Saturday, March 7, 2009

Outsourcing has produced mixed results

Courtesy: http://business.timesonline.co.uk/

Steve Martin, director of the Centre for Local and Regional Government Research at Cardiff University

We have had a decade of healthy increases in public spending, and that has now come to an end. Spending on essential services like health and education will increase at a much slower rate from now on. Culture and leisure spending will probably be significantly scaled back.

There will be a reduction in high-earning staff. HR, administration and pension teams may be merged into services that work for several authorities. There will be shared chief executives and directors of services.

Outsourcing has been tried for several years with varying degrees of success. It appears to work best where targets and functions can be tightly controlled. However, there have been some notable disasters, and it is not a magic solution.

The past 10 years have been about improving quality, but now there will be a rethink and we will see services delivered differently.

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